Page 224 - Compendium of Law & Regulations

Article VI of GATT, 1994

15.5 It must be demonstrated that the subsidized imports are, through the effects
47
of subsidies, causing injury within the meaning of this Agreement. The
demonstration of a causal relationship between the subsidized imports and the
injury to the domestic industry shall be based on an examination of all relevant
evidence before the authorities. The authorities shall also examine any known
factors other than the subsidized imports which at the same time are injuring
the domestic industry, and the injuries caused by these other factors must not
be attributed to the subsidized imports. Factors which may be relevant in this

respect include, inter alia, the volumes and prices of non-subsidized imports
of the product in question, contraction in demand or changes in the patterns
of consumption, trade restrictive practices of and competition between the
foreign and domestic producers, developments in technology and the export
performance and productivity of the domestic industry.

15.6 The effect of the subsidized imports shall be assessed in relation to the
domestic production of the like product when available data permit the

separate identification of that production on the basis of such criteria as the
production process, producers’ sales and profits. If such separate identification
of that production is not possible, the effects of the subsidized imports shall
be assessed by the examination of the production of the narrowest group or
range of products, which includes the like product, for which the necessary
information can be provided.

15.7 A determination of a threat of material injury shall be based on facts and

not merely on allegation, conjecture or remote possibility. The change in
circumstances which would create a situation in which the subsidy would cause
injury must be clearly foreseen and imminent. In making a determination
regarding the existence of a threat of material injury, the investigating authorities
should consider, inter alia, such factors as:

(i) nature of the subsidy or subsidies in question and the trade effects likely
to arise therefrom;

47 As set forth in paragraphs 2 and 4.

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